Myanmar junta seeks to kick out Japan’s Kirin brewery
A Myanmar military conglomerate is seeking to end a joint venture with Japanese beer giant Kirin and liquidate the brewery operations they are running together as drinks produced there, including the flagship Myanmar Beer brand, are being widely boycotted by the population and sales dropped significantly, AFP reported.
Representatives for Myanma Economic Holdings Limited, of MEHL, “applied to dissolve Myanmar Brewery Limited on November 19,” the news agency cited state-backed newspaper Myanma Alin.
However, the paper, which is run by Myanmar’s Ministry of Information, did not give details on why the decision had been made.
Kirin has a majority stake in Myanmar Brewery Limited in partnership with MEHL, a secretive military-controlled conglomerate spanning over a large number of industries, including beverages, tobacco, transportation, textiles, tourism, banking and gemstone mining.
Most popular beer brand in Myanmar
Myanmar Brewery had a market share of nearly 80 per cent as per latest available figures published by Kirin in 2018. In fiscal year 2020, the business generated 32.6 billion yen ($309 million) in revenue, the Japanese brewer said.
However, the company lately has come under scrutiny over its relations with military-owned breweries. Directly after the coup, Kirin said it would cut business ties with the military, accusing the junta of acting “in contradiction” to its principles on human rights.
Kirin wants to remain in the Myanmar market
Kirin Holdings in a first official reaction to the application on November 24 said it objected to the plan by its partner in Myanmar to liquidate the brewery joint venture there.
The company would still adhere to its plans to dissolve partnerships with companies linked to the military in Myanmar, but wants to stay involved in the Myanmar market with a potential private partner. Respective negotiations with the current Myanmar partner have been unsuccessful as “MEHL has been uncooperative, effectively rejecting our proposals,” Kirin said.
[caption id="attachment_37815" align="alignleft" width="300"] Kirin's massive brewery complex in northern Yangon covers 80 per cent of Myanmar's beer market[/caption] A Myanmar military conglomerate is seeking to end a joint venture with Japanese beer giant Kirin and liquidate the brewery operations they are running together as drinks produced there, including the flagship Myanmar Beer brand, are being widely boycotted by the population and sales dropped significantly, AFP reported. Representatives for Myanma Economic Holdings Limited, of MEHL, “applied to dissolve Myanmar Brewery Limited on November 19,” the news agency cited state-backed newspaper Myanma Alin. However, the paper, which is run by Myanmar’s...
A Myanmar military conglomerate is seeking to end a joint venture with Japanese beer giant Kirin and liquidate the brewery operations they are running together as drinks produced there, including the flagship Myanmar Beer brand, are being widely boycotted by the population and sales dropped significantly, AFP reported.
Representatives for Myanma Economic Holdings Limited, of MEHL, “applied to dissolve Myanmar Brewery Limited on November 19,” the news agency cited state-backed newspaper Myanma Alin.
However, the paper, which is run by Myanmar’s Ministry of Information, did not give details on why the decision had been made.
Kirin has a majority stake in Myanmar Brewery Limited in partnership with MEHL, a secretive military-controlled conglomerate spanning over a large number of industries, including beverages, tobacco, transportation, textiles, tourism, banking and gemstone mining.
Most popular beer brand in Myanmar
Myanmar Brewery had a market share of nearly 80 per cent as per latest available figures published by Kirin in 2018. In fiscal year 2020, the business generated 32.6 billion yen ($309 million) in revenue, the Japanese brewer said.
However, the company lately has come under scrutiny over its relations with military-owned breweries. Directly after the coup, Kirin said it would cut business ties with the military, accusing the junta of acting “in contradiction” to its principles on human rights.
Kirin wants to remain in the Myanmar market
Kirin Holdings in a first official reaction to the application on November 24 said it objected to the plan by its partner in Myanmar to liquidate the brewery joint venture there.
The company would still adhere to its plans to dissolve partnerships with companies linked to the military in Myanmar, but wants to stay involved in the Myanmar market with a potential private partner. Respective negotiations with the current Myanmar partner have been unsuccessful as “MEHL has been uncooperative, effectively rejecting our proposals,” Kirin said.
